Finance questions and answers in February 2022

 . 6. Using one or more online sources, determine the annualized total return (i.e., including dividends reinvested), volatility (using monthly retruns), and Sharpe ratio of Berkshire Hathaway's Clas...
 . 3. You are presented with the following information regarding Portfolios X, Y, and Z: E(r) beta Portfolio X 12% .25 1.6 Portfolio Y 8% .18 0.8 Portfolio Z 3% .00 0.0 Which of Portfolio X and Y wou...
 . 3. You believe arbitrage price theory is a model for equity market returns. Your friend tells you she has found an investment manager who has consistently produced Jensen's alpha over the past t...
George: (currently 41 years old, birthday is June 23rd): graduated in April 2000 and met Kevin's mother at their graduation ceremony, they married a year later; and started his own business upon gradu...
George is thinking that his TFSA investments are too conservative and wants to invest in XYZ Inc. as their stock is up 40%! If George invests all his TFSA money in XYZ Inc. and it continues to climb t...
Jessie's gross annual salary is $91,800. His employer has withheld monthly income taxes and other payroll deductions of $3,800. Jessie has monthly fixed expenses of $1,850, variable expenses of $1,400...
Triple A Company is a mid-sized California company that specializes in creating high-fashion clothing. The company executives want to understand financial options and its application in corporate fina...
You are a corporate treasurer and you would like to convert the exposure your firm has to a 10 year $100,000,000 bond issue it plans to make in the coming days to a floating rate.  This bond will rep...
Subject : principles of finance   As an investor, you expect the inflation rate to be 7% next year, to fall to 5% during the following year and then to remain at a rate of 3% thereafter. Assuming tha...
Debbie wants to know how much her cost of living will be in 18 years, based on a 2.85% annual rate of inflation. Her current cost of living is $56,200.   $90,074.12 $33,889.02 $93,813.48 $93,199.51 H...
Bilibili Inc (BILI) is an internet gaming company in China. Bear Fitchel and his grandson, Bull Fitchel were discussing BILI's stock value. Bear doesn't understand why people like online gaming and so...
Dionex Corporation, a leader in the development and manufacture of ion chromatography systems (used to identify contaminants in electronic devices), reported earnings per share of $2.02 in 1993 and pa...
Moonlight Gas & Electric Inc. is undertaking a 50-year project that requires an initial investment of $100 million. The project provides no annual cash inflow for the first ten years, an annual ca...
Martingale Corporation is considering a project that requires an initial investment of $5,000 in Year 0. The project is also expected to have a "net cost" of $5,000 in Year 1. It will then provide a p...
Tempest Industries Inc. is considering a 13-year project that requires an initial investment of $50 million. The project provides no annual cash inflow for the first five years, an annual cash inflow ...
Egmont Corporation is considering the following project. Assume that the corporate tax rate is 21% and the firm's discount rate is 10%.   Duration of the project: 7 years   Initial investment:...
Pastoral Healthcare Inc. is considering the following project. Assume that the corporate tax rate is 21% and the firm's discount rate is 10%.   Duration: 5 years   Initial investment: $3 milli...
Remember that there has to be a negative number in your calculations for the formulas to work. If you get an error message on your calculator, go back, and make one of the dollar variables negative......
Project NPV* Better Mousetrap's research laboratories have developed a new trap. The project requires an initial investment in plant and equipment of $6 million. This investment will be depreciated st...
SC is an oven manufacturer. It is evaluating a project to produce new ovens. The project has the following features: a. Initial investment in plant and equipment today is $2 million.  b. First-year s...
CSC is an oven manufacturer. It is evaluating a project to produce new ovens. The project has the following features: a. Initial investment in plant and equipment today is $2 million.  b. First-year ...
Ontel Inc expects an EPS of $10 and DPS (dividend per share) of $6 next year and expects to maintain the same payout ratio for the foreseeable future. It has an opportunity to invest its retained earn...
CSC is an oven manufacturer. It is evaluating a project to produce new ovens. The project has the following features: a. Initial investment in plant and equipment today is $2 million.  b. First-year ...
Ontel Inc expects an EPS of $10 and DPS (dividend per share) of $6 next year and expects to maintain the same payout ratio for the foreseeable future. It has an opportunity to invest its retained earn...
Coca Cola (KO) price is $61/share. The company is expected to pay dividend  of $1.7/share next year. (In reality, dividends are paid quarterly. In this question we will assume for simplicity that all...
Which ofthe following statements is true? 0 a. More than one of the options in this question are correct. 0 b. Money market arbitrage exists when international parity conditions do not hold. 0 c. None...
Leading and lagging is of value to MNCs because of O a. foreign exchange risk. O b. exchange and capital controls. O c. None of the options in this question are correct. 0 d. basis risk. 0 e. diverse ...
5. How large must transaction costs in the FX market be such that an arbitrage opportunity, given these spot rates, is no longer possible? USD1.351/GBP, EUR1.19/GBP USDO.88/EUR O a. 7.4933% per transa...
QUESTION : BELOW IS FROM Game Theory and Design Thinking please answer accordingly.   You and one of your classmates of FIN207 are selected to play a game. In this game, both players would write down...
1. How many days (rounded to the nearest day) will it take for $1,950 to accumulate to $2,125 at 6.5% annual simple interest? 2. How many years will it take for an investment of $1,000 to grow to $1,5...